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Your 2023 commercial insurance renewal and update

Your 2023 commercial insurance renewal and update

A Consent to Share document is attached, which allows Co-operators to share your claims experience with CHF Canada so that we can make our Risk Management Program even better.  Don’t worry – sharing this information is confidential and will NOT be used in any way to impact your insurance premiums.  Please sign and return to CHF Canada by January 31, 2023.

Consent to Share Document

2023 Commercial Insurance Update

Your 2023 renewal documents and invoice are coming soon! Co-operators will send your 2023 renewal documents and invoice directly to your co-op starting in November 2022.

Download this update as a PDF

CHF Canada and Co-operators have a long-standing partnership to deliver an affordable and sustainable commercial insurance program exclusively for our housing co-op members. Over the last few years, we have worked together to address challenges within the program due to the rise in number and cost of weather events that cause property damage and claims from water, wind, hail and heat-related fire damage. The program has seen swings in insurance premiums over the past few years and we thank you for continued participation. Thank you to those who have enrolled in the NEW Risk Management Program; we are excited to have you on board!   We know that keeping your community safe is important and our new program is targeted to meet your needs. We are committed to working with you to reduce preventable losses and keep premiums more stable for everyone.

In 2022, Canada has seen the highest inflation rates in over 40 years, and that impacts all of us. Claims costs continue to rise and we are well aware of the devastating impacts of climate-related losses. In addition, the number of property, liability and business interruption claims in the program has increased by 20% over the last year.  Fire losses are more expensive and more frequent than last year, and significantly more costly than the prior five-year average. By asking our members to focus on education about loss prevention and risk management, we can reduce the number of claims in the program. Participation in our NEW Risk Management Program will help keep your community and members safe!

2023 Premium changes

Each year, CHF Canada and Co-operators reviews our previous program losses and uses future risk indicators to ensure the rates and collected premiums cover the anticipated cost of future claims and administration of this program. Our base adjustments vary by region.

Average premium changes by region for 2023:

  • Atlantic provinces: loss experience and claims activity in this region required an overall premium increase of 8.5%.
  • Ontario: loss experience and claims activity in this region required an overall premium increase of 0.2%.
  • Western provinces: Loss experience and claims activity in this region required an overall premium increase of 22.6%.

Please note – your individual premium could vary due to:

  • Your individual five-year loss ratio resulting in a credit or surcharge to your premium.
  • Completing the requirements for the first year of the NEW Risk Management Program. If so, you will receive a 5% credit on your rate.

Inflation factor – A 10% inflationary increase on all building values will be added unless your building has had a building valuation completed within the last two years.

If you have questions about the changes in your insurance premiums, please refer to your Co-operators advisor.

Simplifying the Program

The program is being simplified to pave the way for some policy system automation enhancements coming in 2024.

Ensuring that our program is long-term and affordable is important to CHF Canada and Co-operators. In 2022, together we undertook a lengthy review of the coverages, premium calculation tools, together with industry-wide claims trends and trends within this program. As a result of this review, we are making some changes to the program’s rating tools and coverages.

Qualifier tool discontinued

We are discontinuing the Qualifier tool and the associated levels (Gold, Silver & Bronze) and rating credits or rating surcharges.  This will result in less work for co-op members and for the advisors. The rating tools are also being simplified, creating a more level playing field where all risks share a common rating basis for their region. The 5% discount on rates will be applied to those co-ops that participated fully in the NEW Risk Management Program. Co-operators will assess surcharges for co-ops on an individual basis where these are warranted for a remedial risk.

Help to cut costs— increase your deductible

One of the ways your co-op can offset the cost of higher premiums is to raise your deductible.
Here’s the deductible savings chart showing the percentage saved on raising to a higher deductible.

Please note: Increasing deductibles can save insurance premiums, but increases your co-op’s
expense in the event of a loss.

Region Raise your deductible to Save on your property rate
All regions $2,500 10%
$5,000 15%
$10,000 25%
$25,000 40%

CHF Canada’s NEW Risk Management Program

Common insurance and safety risks can be found in any co-op; many are caused by members, and most are preventable. If they are not identified and managed, the number of claims made to your insurance company can increase quickly and the cost to manage those claims will continue to rise. This becomes expensive and time-consuming and can have a negative effect on the long-term sustainability of your co-op as well as the safety of your co-op community. A co-op that implements and consistently follows a risk management program will find it easier and more cost-effective than dealing with unexpected crises or situations after they happen.   An  annual risk management program is also important to the overall commercial insurance program as claims are increasing and costs are rising. To keep insurance rates and premiums down and make the program more sustainable, it is important that all co-ops participating in CHF Canada’s insurance program do their part to reduce their number of claims.

CHF Canada, in collaboration with Co-operators, launched a risk management program in 2018 which asked members to check for common risks in their units. However, we did not receive the level of participation we would have liked, so we engaged in extensive member outreach asking you, our members, to help us find a better approach for you and your co-op members.  With this information in mind, we designed a new Risk Management Program that better meets your needs.

This new program involves activities over a three-year period that provides sufficient time for your Board and Management to build risk management into the co-op’s daily routines. This NEW program provides you with the information and tools necessary to develop an annual risk management program for your housing co-op that is less time-consuming and involves everyone in the process. Phase One of this program was launched in January of this year.

All co-ops that fully participated in Phase One of the NEW Risk Management Program received a discount on their insurance rates at renewal. Many of our member co-ops established risk management practices and engaged in the activities needed to receive the discount, which resulted in lower insurance premiums. Although the deadline to receive this discount was September 30th, you can still participate in Phase One activities and receive a discount on your 2024 insurance rates.

All of the information you need can be found on our website at www.chfcanada.coop, following the links for the Risk Management Program.  If you need help at any point along the way, please don’t hesitate to contact Owen Carnahan, our Co-ordinator, Insurance and Risk Management at ocarnahan@chfcanada.coop or by calling 1-800-465-2752, ext. 236.

CHF Canada is here to help members manage their risks, save money on their insurance, and keep their communities safe! Stay tuned for information on Phase Two of the program coming your way soon.

Saving money!

As you read above, you can now save money on your renewal premium by participating in the CHF Canada Risk Management Program.

So watch your email in early 2023 for the next risk management program, Phase 2 package coming your way.

Why are we doing this?

  • To make sure your co-op’s members are safe! Our Risk Management program is based on our past claims history. Checking for common risks could help prevent fires, accidents, severe injuries, or massive property damage.
  • To prevent risks, which helps lower insurance premiums for everyone in the program. With fewer claims, everyone in the program saves money.
  • To save money for your own co-op! Your insurance premiums are based on your individual
    co-op’s loss ratio so if you reduce the number of claims, you could get a credit on your final invoice.
  • If you don’t find and fix the risks in your units, it could impact your insurance coverage.

Coverage Changes

Co-operators has made changes to your policy coverages.  We recommend speaking to your Co-operators advisor or your Federated Account Co-ordinators to ensure you fully understand the changes and options available.

Accident Forgiveness clause

The Accident Forgiveness clause is being removed from the program. While this clause creates benefit for individual coops who have had a claim, it does not create value for the entire program.  Co-operators reviewed the impact of this clause over time and found that it creates unequal rating within the program. It is important that the commercial insurance program rates are fair for all coops in the program and they felt that by removing this clause there is more accountability for each coop on their individual results.

Flood and Sewer Back-up Endorsement

Co-operators has made changes to combine the Flood and Sewer Back-up endorsements into one coverage. Since these can no longer be purchased separately, your policy now includes our new combined Flood and Sewer Back-up Endorsement.

Enhancements in cyber

The existing Privacy Breach Liability coverage will be replaced by Cyber Guard Select which will provide additional coverage! Privacy breach expense coverage is included together with business interruption loss to pay for lost income and extra expense due to a privacy breach of other cyber event, Cyber Event Liability and Privacy Regulatory Liability coverage too. Please refer to your Co-op advisor or Federated Account Coordinator for specific coverage details.

Directors’ and Officers’ Liability coverage limit

These days, courts are awarding larger than ever legal settlements. Co-ops are encouraged to consider increasing their Directors’ and Officers’ Liability coverage limits to ensure they are protected in the event of a large claims settlement. We now offer limits up to $5 million. Contact your Co-operators Advisor to discuss available options to make sure your co-op is protected.

If you have questions about the changes to your policy coverages, please refer to your Co-operators advisor or Federated Account Co-ordinator.

Legal assistance

Need expert legal assistance? Talk to a lawyer and enjoy confidential legal assistance at no additional cost.

Co-operators’ Legal Assistance Helpline provides you with convenient access to general legal assistance. They have added this free service as a new benefit that is automatically included with your policy. It covers almost any topic from contract disputes to employment or business-related issues, property concerns, tax investigations, and more.

There’s no limit on the number or length of your calls. Using the service is not considered a claim and it will not affect your policy. The Legal Assistance Helpline is available from 8 a.m. to midnight, local time, and 24/7 in emergency situations.

Take advantage of this new service by calling (toll-free) 1-855-953-1431.

Your 2023 Renewal Documents and Invoices are coming soon

Co-operators will send your 2023 renewal documents and invoice directly to your co-op starting in November 2022.

Who to call for help

For any questions about CHF Canada’s commercial insurance program after you receive your material, you can call 1-800-465-2752 or send an email to info@chfcanada.coop. If you have insurance-related questions, such as questions about coverage or premiums, please call your Co-operators Financial Advisor. You can find their name and number on your policy declaration document.

Co-operators and CHF Canada have the expertise to help you every step of the way. We are committed to making our co-ops safer and helping keep your insurance affordable.

CHF Canada and Co-operators—working together to make sure you’re covered!